# Fibonacci Calculator - A Powerful Technical Tool

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The Fibonacci calculator will show you the retracement and extension levels according to the popular Fibonacci theory used in forex trading.

 Uptrend *) The highest price point according to your observations (example: 1.35000) *) The lowest price point according to your observations (example: 1.31000)
 Retracements 0% (b) 23.6% 38.2% 50% 61.8% 76.4% 100% (a) 138.2%
 Extensions 261.8% 200% 161.8% 138.2% 100% 61.8% 50% 38.2% 23.6%

 Downtrend *) The highest price point according to your observations (example: 1.35000) *) The lowest price point according to your observations (example: 1.31000)
 Retracements 138.2% 100% (a) 76.4% 61.8% 50% 38.2% 23.6% 0% (b)
 Extensions 23.6% 38.2% 50% 61.8% 100% 138.2% 161.8% 200% 261.8%

1. Identify where prices move. For example in the picture below, it seems that prices are going down (bearish). In this situation, traders will look for opportunities to sell when prices temporarily retrace higher.
2. Mark the horizontal lines where Fibonacci Retracement 23.6% (0.236), 38.2% (0.382), and 61.8% (0.618) are located. These lines are used to identify levels where prices are more likely to reverse.
3. Observe close prices on the candle that represents price movements near the aforementioned Retracement levels. When prices have risen up to Fibonacci levels of 0.236, 0.382, or 0.618, take note of where the next candle closes.

1. Identify the Trend: Determine whether the trend is bullish or bearish.
2. Select Time Frame: To minimize price noise, it is advisable to utilize 1-hour or longer time frame.
3. Determine Peak Points: Find the most recent swing high and swing low points to draw Fibonacci retracements.
4. Entry at Fibonacci Levels: Look for opportunities to enter trades when there is a retracement between the 50% and 61.8% Fibonacci levels.
5. Determine Exit: Set stop loss and take profit orders based on the latest swing points.